Shandong Longji Machinery Co. Ltd. (002363) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shandong Longji Machinery Co. Ltd.

Why is Shandong Longji Machinery Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 1.31%

The company has been able to generate a Return on Capital Employed (avg) of 1.31% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 3.51% and Operating profit at 13.19% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 161.3 MM
INTEREST COVERAGE RATIO(Q) Lowest at 3,860.03
NET SALES(Q) Lowest at CNY 441.23 MM

Below par performance in long term as well as near term

Along with generating -7.38% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Shandong Longji Machinery Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shandong Longji Machinery Co. Ltd.

-100.0%

0.24

41.87%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.51%

EBIT Growth (5y)

13.19%

EBIT to Interest (avg)

5.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.89

Tax Ratio

18.38%

Dividend Payout Ratio

49.81%

Pledged Shares

Institutional Holding

ROCE (avg)

1.31%

ROE (avg)

1.71%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.31

EV to EBIT

29.13

EV to EBITDA

10.95

EV to Capital Employed

1.59

EV to Sales

0.92

PEG Ratio

0.87

Dividend Yield

2.06%

ROCE (Latest)

5.46%

ROE (Latest)

3.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET PROFIT(HY)

At CNY 43.04 MM has Grown at 47.46%

ROCE(HY)

Highest at 3.05%

DEBT-EQUITY RATIO (HY)

Lowest at -48.4 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.89 times

RAW MATERIAL COST(Y)

Fallen by -32.7% (YoY

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 161.3 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 3,860.03

NET SALES(Q)

Lowest at CNY 441.23 MM

OPERATING PROFIT(Q)

Lowest at CNY 17.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.07 %

Here's what is working for Shandong Longji Machinery Co. Ltd.

Net Profit

At CNY 43.04 MM has Grown at 47.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -48.4 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.89 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -32.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Shandong Longji Machinery Co. Ltd.

Operating Cash Flow

Lowest at CNY 161.3 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 441.23 MM has Fallen at -13.47%

over average net sales of the previous four periods of CNY 509.93 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 3,860.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 441.23 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 17.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales